Month: March 2022

Risk assessment is the appraisal of probability and significance of identified potential risk events. It means asking how likely is it and how bad will it be if certain risk events happen. Risk is quantified using the formulae: Risk = Read More …

When auditing computerized information systems, it will be found that much reliance is placed within the system upon standard forms and documentation in general, as well as upon strict adherence to procedures laid down. This is no surprise, of course, Read More …

In the selection of representative or randomly chosen transactions or items for audit tests. The scrutiny of files and selection of exceptional items for testing. E.g. On wages payments over Shs.1000 or all stock items worth more than Shs.100,000 in Read More …

The auditor tests the internal controls when he wishes to place reliance on the controls to determine whether the accounting records are reliable. A computerized information system may differ from a manual system by having both manual and programmed controls. Read More …

There may be need for manual controls to for instance, a check to reveal that all purchase orders have been appropriately authorized before a transaction is submitted for processing. Processing controls. These controls seek to ensure that transactions are processed Read More …

To mitigate the risks occasioned by the features of a computerized information system, the management should design internal controls over the system. These controls are mainly classified into general controls and application controls. 1. General controls. These relate to the Read More …